Nigeria can receive an additional $500 million loan from the World Bank to support agricultural commercialization and rural access.

 

The World Bank is about to extend another $500 million loan to the Federal Government of Nigeria, which will be used to support agricultural markets and rural access.

This program, called the Rural Access and Agricultural Marketing Project – Scale Up (RAAMP-SU), is intended to close the gap between rural communities and the larger market by easing access to agricultural markets, hospitals, and schools and fostering social cohesion among rural residents, according to information obtained from the bank.


November 28, 2024, may be the date of approval.
The new loan project is expected to be approved by the board on November 28, 2024, with an estimated appraisal date of July 16, 2024.

Despite the project's projected $550 million cost, the World the bank is proposing a $500 million contribution. Compared to the original World Bank commitment of $280 million for the parent project, the revised commitment amount is 79% greater.

 
Things to be aware of 
The RAAMP-SU project, whose implementation is scheduled to start in the fiscal year 2025, intends to improve the institutional and infrastructural framework required for creating, managing, and sustaining Nigeria's rural road network.

The project aims to establish a direct connection between rural villages and critical agro-logistics hubs, as well as crucial social amenities, by means of strengthening the transport infrastructure and expanding connectivity.

Things to be aware about
The RAAMP-SU program extends the reach of the original RAAMP project to states that were previously not included because of financial limitations brought on by inflation and exchange rate fluctuations.

This scaling up highlights not just the actual physical building of rural

access roads, but also the strengthening of institutions by creating State Road Funds (SRF) and Rural Access Road Agencies (RARA), putting in place Road Asset Management Systems, and improving road safety management procedures.

In addition, the initiative will incorporate gender-targeted opportunities, skill development for managing rural roads, and digital outcome monitoring, demonstrating a holistic approach to rural development.

The principal coordinating body is the Federal Ministries of Agriculture and Rural Development (FMARD), with assistance from a number of State Ministries, Departments, and Agencies (MDAs), including those that deal with the environment, works, and women's affairs.

 
Additional Understanding
RAAMP, which was initially intended to be the replacement for the Rural Access and Mobility Project (RAMP), has already received significant funding from foreign lenders, global funders, such as the Agence Francaise de Development (AFD), the World Bank, and the African Development Bank (AfDB).

Having already committed $280 million of the $575 million project cost in funding from the World Bank, the new money aims to expand the project's influence from 19 to all 36 states in Nigeria, thereby bringing in a new era of rural development and agricultural efficiency.

Under President Bola Tinubu's leadership, Nigeria obtained $2.7 billion in total loans from the World Bank due to growing concerns about the expense of servicing the nation's external debt.
The four loans that have been granted are for renewable energy ($750 million), power ($750 million), women's empowerment ($500 million), and girls' education ($700 million).

 
The Coordinating Minister of the Economy and the Minister of Finance, global funders, such as the Agence Francaise de Development (AFD), the World Bank, and the African Development Bank (AfDB).\

According to Wale Edun, the Federal Government and the World Bank are negotiating a $1.5 billion loan to support the budget and boost liquidity in the foreign exchange market.
According to a previous report by Nairametrics, the World Bank might approve a $500 million loan in May 2024 to support Nigeria's human capital development.

 
Nigeria is presently in negotiations with the World Bank to secure a $500 million loan to tackle the difficulties encountered by internally displaced individuals (IDPs) and the communities that house them.